Goldman Sachs, H&R Block, Citigroup, Munis, FSA: Compliance

Quote: Citigroup Resolves Finra Claims That Assistant Defrauded Clients Citigroup Inc. (C) will pay $500,000 to resolve Financial Industry Regulatory Authority claims that it failed to stop fraud by an employee who abused accounts belonging to elderly and ill clients as well as her own father. Palo AltoCaliforniastatement. Moon, who was barred from the securities industry for the misconduct in 2009, was indicted by a federal grand jury on related criminal charges in June. Citigroup failed to investigate red flags including suspicious trades as Moon targeted customers she believed would be unable to monitor their accounts, Finra said. The Palo Alto branch didn’t have adequate systems to prevent Moon from falsifying records, the Washington-based regulator said. In one instance, Moon created an account in the name of a dead customer even after Citigroup had been notified that the person had died, Finra said. She then created a fraudulent account in the name of the customer’s widow, using it to funnel $7,500 to her own personal account, according to the statement. When Citigroup discovered Moon’s suspicious activity in 2008, the firm “immediately notified the authorities, terminated her employment and reimbursed impacted clients,” the company said in an e-mailed statement. “We will provide any assistance necessary to ensure that the former employee is prosecuted to the fullest extent of the law.” A phone call to Geoffrey Hansen, a federal public defender representing Moon in the criminal matter, wasn’t immediately returned. Moon was employed by Citigroup’s Smith Barney unit, Elizabeth Fogarty, a bank spokeswoman, said in an e-mail. Goldman Sachs Says EU Accuses Firm in Cable Price-Fixing Goldman Sachs Group Inc. said the European Commission told the firm it may have to pay fines in a case relating to price fixing by power-cable companies. The European Commission issued a â...
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